Reply to $7M vs $10M

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Reply to "$7M vs $10M"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It really depends on your level of spending and  comfort with uncertainty. For me, the difference between those numbers is the security of being able to cover my mother’s elder care and potentially my own if I live as long as she has. I’m 58 and could easily live another 40 years. The $250,000 the $7M generates is before taxes and inflation. Yes, I will certainly tap principal at some point, but still, $250,000 30-some years from now will not be a fortune. It’s crazy and cruel what decent elder care costs. [/quote]I understand.  The $7M is not static, its invested in a diversified portfolio, probably yield about 3.3%  plus capital appreciation in the market near S&P 500 returns. Back to my point $7M or $10M today is really immaterial.  If you don't have the skill set or  a financial manager to tend to this sum it is pointless.  As far as elder care, my plan  is to stay at home and bring in hourly workers.  Much cheaper than going into a specialized care facility.  You can make it complicated if you wish. [/quote]

bringing in hourly workers for elder care is not cheaper than a facility.  Get yourself into a CCRC by early to mid 70s, then you are covered for much less[/quote]

I would rather blow my head off than go into a CCRC in my mid 70s - particularly if i have $10M liquid. I'll pay for in-home care, if/when I need it.

If your 58 today and have $10M and don't touch it, that 10M will be easily 25M + by the time you're in your late 70s. That would throw off safely $1M of cash flow, and you could spend more if needed considering at that point in time (if you need care) your life expectancy won't be too long.[/quote]

+1.  One of my aha moments was when I went to visit my colleague's grandfather who was at an elder care facility back in the mid '90s.  We were traveling on work and the grandpa happened to be in the city we were traveling to. My colleague praised his grandpa and how he sponsors an annual cruise vacation for the extended family (20+ people), etc. When I asked why one of the kids or grandkids were not taking care or grandpa, he just laughed and said 'no f'ing way!'.  The facility itself was nice, high-end but depressing.  Where I come from, there are no eldercare facilities.  Your family is it.  Yep.. No way, I want my end of days to be in one of those places.[/quote]

CcRC are not your typical elder care facility.  These are ones you pay 400k+ to even enter into a regular condo/house.  The memory care, assisted living and healthcare facilities an are typically 1000x better than what you are imagining.  Hence why some pay close to a million entry fee.  
But for that you are never charged more for the higher levels of care[/quote]

But why?  When you are elderly to require care you are either disabled to take care of yourself but sharp of mind or you are mentally not there with various levels of dementia.  In the former case you would always prefer to have some worker come in to do cleaning, cooking, maybe light nursing assistance and live at home unless you are severely disabled.  In the latter case.. depending on how "not there" you will be: would you even notice if you are in 400K a year facility or in a less expensive one or a government subsidized one? You are brain dead.  I would just request to be euthanized...

Is it really worth it having to grind for the rest of your still healthy younger years to wait to live until your body starts giving out in hopes of being taking care of when you are a vegetable and have zero QOL anyway?[/quote]

You are not "brain dead" just because you require assisted living or memory care.  I have a relative who has been in "memory care" for over 2 years now and I still have meaningful Facetimes/phone calls weekly with them, 95% of the time.  As long as their meds are well managed they are still doing well.  This person reads books, does puzzles and plays games all the time.  Yes there are people with more advanced issues in the memory care, but my relative is still definately in a position of "life is worth living" and aware of their surroundings and family.  And this is after 2 years there.  If anything, they are doing better in the full time care as they know there is 24 hour excellent care and they get to interact with more people which is good for them.    But they did not feel "safe" at home with their memory issues, so for them it's actually better to be under the full time care and much more cost effective than care at home.[/quote]

What happens to poor people who require memory care?  I don't see them dying on the streets, wandering around or burning their apartments down en masse. [/quote]

Medicaid nursing home. [/quote]

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